For Immediate Release
August 19, 2002

Pepco has been recognized by the U.S. Environmental Protection Agency as a national WasteWise Program Champion for its "impressive waste reduction achievements" in 2001.

EPA`s WasteWise program is a voluntary effort designed to promote waste reduction and recycling, save energy and reduce pollution, including greenhouse gas emissions. Pepco`s recycling efforts in 2001 reduced greenhouse gas emissions by the equivalent of 4,600 metric tons of carbon dioxide, when compared to landfilling the same materials.

"Environmental stewardship is a strongly held corporate value at Pepco and throughout the Pepco Holdings, Inc. family of companies," said Jim Potts, Vice President, Environment for Pepco Holdings, Inc., Pepco`s parent company. "We are honored by the EPA`s recognition of Pepco`s commitment to doing business with respect and care for the environment."

The award will be presented at a ceremony Oct. 10 in Washington.

WasteWise focuses on waste prevention, recycling and buying or manufacturing recycled-content products. Participants agree to develop goals in these areas, track their results, and share their accomplishments with the program. WasteWise has nearly 1,200 partners nationwide representing a wide array of businesses, institutions and government agencies.

Since becoming a Waste Wise Partner in 1995, Pepco has recycled nearly 50 million pounds of materials including computers, office paper, used motor oil and steel. The company`s waste reduction efforts in 2001 include:

• Recycling nearly 900,000 gallons of used motor oil and dielectric fluid (used as a coolant in transformers) and 1,000 gallons of antifreeze,
• Using 4,700 reusable plastic totes during its office relocation instead of cardboard boxes, saving approximately 9,400 pounds of cardboard and saving $8,100,
• Purchasing $28,000 of recycled-content office supplies, including paper products, furniture and other general office needs, and
• Hosting the D.C.-area WasteWise Partner Roundtable in April 2001.
  

For more information on Pepco`s corporate Environmental Policy, visit www.pepco.com and click on "Environment" on the navigation bar at the top of the homepage.

Pepco is a wholly owned subsidiary of Pepco Holdings, Inc. (PHI) (NYSE: POM) that delivers electricity at regulated rates to more than 700,000 customers in Washington and major portions of Montgomery and Prince George`s counties in suburban Maryland.